TomaGold Corporation (TSXV: LOT, OTC: TOGOF)
A recent report by Goldman Sachs spoke to the start of a commodity super cycle and without going into the current discussion of gold vs crypto let me just remind people that you cannot crypto “mine” unless you have the commodity; particularly metals from mining that create NVidia video cards, electricity for power and the building or coolant to keep these energy intensive pursuits going. You do not have crypto without real mining and before we get carried away on what the future holds lets deal with the reality of that necessity. We need resources and there is a company in the right location, with the smart investors, great trading volumes and activity that is positioned to make a strong move in 2021. Tomagold has hit most of the checkboxes to position itself for success with the right commodity in gold, excellent strategic partnerships, impressive trading volume, outstanding regions to be working in and exciting drill targets.
2021 looks good for Tomagold.
Tomagold is known for acquisition, assessment, exploration and development of gold mineral properties. The company has interests in five gold properties near the Chibougamau mining camp in northern Quebec: Obalski, Monster Lake East, Monster Lake West, Hazeur and Lac Doda and a joint venture with Evolution Mining Ltd and New Gold Inc., through which it holds a 24.5% interest in the Baird property, near the Red Lake mining camp in Ontario.
The last 6 months has been a flurry of activity as the company canceled a proposed spinout back in August as gold continued its strength and the value of their assets increased. More opportunities presented themselves and Tomagold have been nimble enough to pivot and complete several transactions, strategic board and advisory member changes with focus on its Obalski Project. The company has drawn attention and 60 million shares have traded hands over the past half year. That illustrates the strong interest in the new vision of the new team as we enter this commodity super cycle.
The Baird property is a joint venture with Evolution Mining and New Gold Inc. in the central Red Lake gold belt six kilometres north of the Madsen Mine and fourteen kilometres southwest of the Goldcorp Red Lake Mine. TomaGold holds a 24.5% interest in the property, with New Gold Inc. holding a 24.5% interest and Evolution Mining as operator, owning the remaining 51% interest. The nearly 8 billion market cap Evolution Mining purchased the entire Red Lake District from Goldcorp back in 2019. Having such an impressive partner is this region provides blue sky potential for TomaGold.
Chibougamau mining camp in northern Quebec.
Tomagold has five projects in this mining camp: Lac Doda, Monster Lake East & West, Hazeur and the flagship Obalski Property. Let us consider this chronologically:
July 9th Tomagold signing of an option agreement (the “Agreement”) for the sale of up to an 80% interest in the Lac Doda Property to Goliath Resources Limited (TSXV: GOT) (“Goliath”). The Lac Doda Property consists of 80 mining claims covering 4,478 hectares and is located approximately 20 km southwest of the Monster Lake property in the Chibougamau mining camp in Quebec.
625,000 common shares and 625,000 warrants, each warrant entitling the holder to acquire one common share of Goliath at a price of $0.24 over a 36-month period. Today GOT.V is trading at $0.45 which is almost a 100% gain in 6 months on this transaction. If you are curious about Goliath Resources and its potential, please look at the following: Goliath and Goliath News.
Sept 17 Last month it closed a deal to sell its 25% undivided interest in the Monster Lake project and the related mineral rights to IAMGOLD (TSX: IMG, NYSE: IAG). It received $500,000 and was issued 1,464,377 common shares of IMG. At a $4.59 price for IMG, the current market value of this deal is $7.2 million.
On December 8th, 2020 Tomagold announced of a seven-hole, 2,500-metre drilling program on its flagship Obalski project. The company owns a 100% stake in this 345-hectare property, a former gold-copper producer that hosts seven currently known mineralized zones. It’s 2 km south of Chibougamau, Quebec, in the heart of the Chibougamau mining camp. It produced 100,273 tonnes at grades of 1.14% Cu, 2.08 g/t Au and 6.04 g/t Ag between 1964 to 1972 and around 9,000 tonnes at a reported grade of 8.5 g/t Au in 1984.
With strong partnerships and new board and team members breathing life into an exciting commodity cycle, the company is best considered as a fresh and new project. President and CEO David Grondin has had one heck of a tie in the past 2 years assembling, creating and dealing Tomagold into a strong position with great potential for success. The news release from October 6, 2020 details the capital markets, geological technical acumen and current success in the mining sector. There are far too many wonderful additions, but my subscribers will recognize Victor Cantore, President and CEO of Amex Exploration on the Advisory Board.
“With the Monster Lake transaction, our stronger financial position and our promising gold projects in the Chibougamau and Red Lake mining camps, it was time to better align our corporate structure with our new stated objective of becoming a premier Canadian gold mining company,” said David Grondin, President and Chief Executive Officer of TomaGold.
Capital Structure and Stock
Tomagold has roughly 140 million shares out with 11.3 million stock options out. This is a decent amount of stock out, but the past 6 months ahs shown a big turnover of old investors for new. This bodes well not only for liquidity but in the continued strength in the mining sector.
One final comment: back in January 2020 TomaGold sold its 39.5% interest in Sidace Lake property to Pacton Gold Inc. (TSXV: PAC, OTC: PACXF) for $250,000 and issue 10,000,000 common shares to TomaGold. There are details to this transaction which did complete back on April 30, 2020 but if you look at Pacton Gold the company is doing exceptionally well.
This is a strong consideration. Great mining friendly locations, looking for gold which will continue to shine and attract many with its stability in chaotic times. I am looking forward to what the new team and new vision brings to TomaGold.
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Securities Disclosure: I, Andrew O’Donnell have stock and have been paid for this article.
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